Project focused on activities that included: revision of energy audits, creation of building stock database, project documentation and public procurement.
Zagreb – Energy Efficient City (ZagEE) project was initiated in 2012 as a result of analyses done within the Sustainable Energy Acton Plan for the City of Zagreb (developed in 2010). Project development assistance (PDA) was obtained from the Intelligent Energy Europe programme - Mobilising Local Energy Investment (MLEI). PDA is a financial instrument that supports primarily public sector investors (cities, regions, public infrastructure operators) by bridging the gap between project idea and finance. The project targeted public buildings that were in poor condition and in need of energy refurbishment and modernization of public lighting.
PDA facility requires a leverage factor, meaning that each Euro of EU funding must lead to a minimum level of 15 Euros of investments in sustainable energy. Also, the investments had to be launched within the three-year period. However, these rigorous requirements led to development of more realistic investment programme of higher quality.
IEE MLEI PDA also proved to be the most adequate technical assistance programme for ZagEE project due to:
• Minimum project size requirements (7 vs 50 mil. € in ELENA)
• Eligible internal staff costs (ELENA – only external expertise)
• Project not eligible for JASPERS (not part of the ESIF Operational Programme)
• Right to use funding sources of its own preference (EEEF – required PDA beneficiaries to take a loan from the EEEF)
1,8 mil €
Evidence of success
Developed project documentation made the investments more concrete and mature and by aggregating single renovation projects they became more attractive to financial institutions and ESCOs.
In total, Project Development Assistance was used for development of project documentation for renovation of 87 buildings with total heated area of 226.654 m2 and creation of master plan for modernization of public lighting (3000 lamps). That will lead to total investment of 29,3 million Euros.
• Lack of necessary technical expertise to implement large energy renovation projects
• Bundling of smaller, dispersed energy renovation projects into larger, more bankable packages (lowering transaction costs)
• • Lack of financial (grant) support for preparatory activities on national level
Potential for learning or transfer
Project development assistance could be used for financing organization of capacity building and training sessions for public authorities so they can undertake similar capital investments in the future.
The project has helped with development of the market for energy renovation services (i.e. elaboration of main designs).
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